If there is a natural calamity, what will happen to PPF?

No change.

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Shift rightwards.

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Shift leftwards.

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It will become a straight line.

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Solution

The correct option is C Shift leftwards.
When the resources are reduced due to some reason like natural calamity in the economy then the production of commodities also decreases as they use these resources to develop the commodities. Therefore, if the production of the commodities decreases it leads to inward or leftward shift in the production possibility curve.

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Similar questions

A growth of resources in an economy is shown on PP by:

(a) Leftward shift

(b) Unchanged PPC

(d) None of the above

What factors lead to a rightward shift of the PPC?

What does a rightward (or an outward) shift of the production possibility curve indicate?

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